Liquidator filings jump 160pc after clampdown by CRO

Liquidator filings jump 160pc after clampdown by CRO

A CRACKDOWN by the Companies Registration Office (CRO) on late-filing liquidators has resulted in a surge in paperwork being lodged with the agency.

The CRO began an enforcement process in relation to liquidators’ filings in May, with reminder letters sent to all liquidators with delinquent filings.

The CRO said that there has been a “very large response”, with the number of liquidator filings soaring by 161pc in the first month of the enforcement process.

The agency intends to issue systematic notifications and reminders this month.

Liquidators have statutory obligations under sections 680 and 681 of the Companies Act in relation to making filings. “A liquidator who makes a default in complying with any provision of these Sections shall be guilty of a category 3 offence which can include a fine up to a maximum of €5,000,” said the Department of Business, Enterprise and Innovation, under whose auspices the CRO operates.

The registrar may also make an application under Section 652 of the Companies Act for an order of the court directing the liquidator to make good the default. An order under this section may provide that all costs of and incidental to the application shall be borne by the liquidator.

At the end of 2017, a total of 8,000 E4 forms (a liquidator’s statement of proceedings and position of the winding up) were filed, and 3,518 E3 forms (a liquidator’s account of his/her acts and dealings). At the end of June 2018, 5,500 E4 forms and 2,500 E3 forms were filed.

The CRO said its enforcement unit has also issued summonses to approximately 60 companies that are being prosecuted for late filing. They have court dates in October and November. Last year, there were 874 corporate insolvencies recorded in Ireland, according to Deloitte, with creditors’ voluntary liquidations accounting for 61pc of those.

Deloitte said last month that there had been 435 insolvencies in the first half of 2018, which was a 4pc decline on the first six months of 2017. The figure included 297 creditors’ voluntary liquidations, 83 receiverships and 43 court liquidator appointments.